PMB Technology plans RM650 million alloy plant in Sarawak
The proposed diversification requires shareholder approval and would shift some power capacity away from silicon metal production.
PMB Technology Bhd intends to spend RM650 million on a silicon-aluminium (Si-Al) alloy plant at Samalaju Industrial Park in Sarawak, shifting towards a new business as weak silicon metal prices and demand weigh on earnings. In a bourse filing, the company said it expects construction to finish and commercial operations to begin no later than the second quarter of 2027.
The site also houses the group’s silicon metal operations. Under the proposal, PMB Technology would redirect some of its power capacity to alloy smelting and suspend part of its silicon metal production. The company said this would make better use of its secured long-term electricity supply.
PMB Technology reported a net profit of RM44.75 million for FY2023, but recorded a net loss of RM12.83 million for FY2025. Its net loss reached RM48.16 million in 1HFY2026, against RM4.66 million in net profit a year earlier.
The company said oversupply and weak downstream demand continued to affect silicon metal, with prices expected to stay depressed in the near term. It described global Si-Al alloy demand as broadly stable and said the proposed business would target aerospace and automotive applications.
The group expects diversification to widen its earnings base, although it does not anticipate an immediate earnings impact. It also plans to be more selective about construction projects and may gradually reduce those activities, depending on existing project completion, market conditions and suitable opportunities.
Shareholders will be asked to approve the proposal at an extraordinary general meeting. AmInvestment Bank Bhd is advising on the plan as principal adviser.
